Following Senate delay, crypto bill has a narrow window to become law
After an August recess, lawmakers in the Senate will have just 36 days in session before the end of the year to pass the CLARITY Act.
As lawmakers in the Senate prepare to return from an August recess, there remains just 36 days before the year's end to pass the CLARITY Act. This Digital Asset Market Clarity (CLARITY) Act is anticipated to be put to a cloture vote in September upon the Senate's return, but it still encounters significant obstacles on its way to becoming law.
Majority Leader John Thune filed cloture for the crypto market structure bill to be brought to the floor for consideration before the Senate's break for a month-long recess last week. Upon lawmakers' return from their recess on September 14, they have only 14 days scheduled to be in session before taking a recess before the November election and an additional 22 days before the end of the year.
Despite optimism among crypto industry advocates about the bill's chances in Congress, many lawmakers have not reached an agreement on several provisions that remain contentious. These issues include ethics language related to US President Donald Trump's connections to digital assets and further limitations for crypto companies offering stablecoin rewards.
Since being passed by the House of Representatives last year, the Senate has had 13 months to consider the CLARITY Act. During this time, the chamber has faced multiple government shutdowns, resistance from industry leaders, and criticism from numerous Democrats who argued that the bill would enable what they termed "crypto corruption" by President Trump.
Should the Senate hold a cloture vote in September, lawmakers would only have a short amount of time to address the bill's issues before a possible floor vote and breaking for the pre-election recess. After the November midterm elections, when all 435 House seats and 33 Senate seats will be contested, the composition of Congress could change, potentially complicating discussions on the legislation, with many members of Congress likely leaving in 2027.
In the absence of the market structure bill for at least a month, many experts are turning to regulatory agencies such as the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) for clarity. The legislation was intended to grant the CFTC greater authority to regulate and enforce rules governing digital assets, but with the law still pending, these agencies have indicated they will proceed with rulemaking even if Congress fails to pass CLARITY.
In a July interview, SEC Chair Paul Atkins stated that the agency is "prepared, willing, and able to issue rules" to address crypto if Congress does not pass CLARITY. Similarly, CFTC Chair Michael Selig remarked in April that the commission is "ready to assume responsibility" for overseeing crypto markets, referring to lawmakers enacting the market structure bill. Both agencies have taken measures to coordinate oversight of financial markets.
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